You are here: Home - Household Bills - News -

Taxman gets bumper haul in January

Written by:
January is a cruel month in lots of ways, not least because it’s the time HMRC collects the bulk of its taxes.

January is a cruel month in lots of ways, not least because it’s the time HMRC collects the bulk of its taxes.

This year saw a particularly bumper haul for the UK tax authorities, with rises across income tax, capital gains tax and VAT. Income tax hit £28,756m, capital gains tax was £6,756m, while VAT sat at £13,701m.

This represents a 10% rise in income tax over the same point in 2018. Rates haven’t risen, but there are now more people in employment and wages have risen, which has pushed up the overall amount raised.

Capital gains tax is up 21%, with both the UK housing market and global stock markets buoyant. At the same time, lower rates have encouraged people to realise gains. Only VAT fell, moving slightly lower to £13,795m to £13,701m.

Rising tax bills

Over the past five years, the income tax bill has risen 15%, VAT 20%, stamp duty 39%, capital gains tax 99% and inheritance tax 53%.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “One of the many things that’s hard to like about the taxman is the fact that January is the peak of his year. Every January, as we face the misery of tax returns and a spending hangover, the taxman hits the January jackpot. This January has put even more of a smile on his face, because the income and capital gains tax take has ticked up significantly.

“Buoyant stock markets through 2017 probably helped bolster capital gains tax receipts. The taxman is also cashing in on fiscal drag, because the more our wages rise, the more tax we’ll pay on them, and the more of our income falls into higher or additional rate tax brackets.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
British drivers wasting £565m in ‘loyalty’ tax

British drivers could pay millions less if they shopped around at renewal time, rather than allowing their car insurance to...